ERP (enterprise resource planning) software provides comprehensive functionality to small, medium and large business.  All business transactions require the interaction of departments and the sharing of data.  Business activity is based on the flow of information.  ERP software is a tool my which the smooth flow of data and interaction of departments can be accomplished to ensure success.

ERP Software

ERP Software Offers End-to End Solutions

Coming in a variety of sizes, ERP software is the product of software development companies; large, small and everywhere in between.  From first tier companies like SAP and Oracle, traditional ERP software system is offered.   Traditional systems require a large capital investment to get them up and running but they are the bedrock for companies on the brink of significant expansion.  Making this financial commitment is a major step that sets the pace for future growth.   SAP and Oracle are the stuff that the business processes of large corporations are made.  Integrated or modular – major business systems have the scalability for a business looking at significant development and making real steps toward the big time.  

These systems are generally located on-site and require major hardware investment as well as highly skilled personnel to support and administer the systems. Outsourcing of support is one strategy but either way, infrastructure investments are mandatory.

Major ERP software is often compatible with other systems and can be configured to accommodate the specific requirements of a particular company.  Writing interfaces for third party add-ons is a common practice and often canned interfaces exist.  Support expertise is readily available.  

Implementation of large ERP software system is a labor and time intensive enterprise that weighs down front-end investment.  ERP software is often flexible in terms of licensing models and ROI (return on investment) is often considerable and can have a positive impact on TCO (total cost of ownership).

Tier II ERP software often requires infrastructure changes since it can be located on-site, as well.  However, the option of adopting SaaS (software as a service) is also possible.  A conventional approach to the use of Tier II specialized or batch-driven ERP software is to have a small server farm located on-site.  But the choice to employ SaaS as a solution is often available.  SaaS, also called, cloud computing has minimal infrastructure requirements.   Thin clients are used to access ERP software on a server farm maintained by the SaaS provider.  Initial capital outlay can be much lower than that ERP software supplied by traditional technology architecture, however, incidentals ups and extras result from what might be an ala carte approach to functionality.  Long term costs can approach or even exceed that of a traditional end to end system like SAP or Oracle.

Finally, obtaining ERP software functionality is also possible by using software that is hosted by the software provider.  This is a cost effective solution often used by small businesses.  Increased functionality is approachable for limited budgets with a few trade-offs.  Configuration is often standardized and provides functionality most commonly in demand and limits customization.  Also, “leased” software often requires upfront payment though as much as 30% can be saved over the life of a three-year agreement.

Written by :

tracey boxer